Investment concerned by eurozone crisis

Investment advisers concerned by eurozone crisis

Investment advisers in the UK are still very worried about the continuing debt crisis in the eurozone, an expert has noted.

According to Rod Aldridge, head of UK retail distribution at Barings, most advisers are "deeply concerned" about the situation in the financial bloc.

Indeed, 89 per cent of those polled in a new survey believe the eurozone crisis is the largest macroeconomic challenge at the moment - ahead of overleveraged economies and indications that growth in China is slowing down.

Barings found that investment advisers are taking various steps to ensure their clients do not lose out as a result of the financial turbulence across the world.

For instance, 67 per cent said they are encouraging clients to diversify their portfolios – an option favoured by just 64 per cent when they were polled three months ago.

Meanwhile, 47 per cent of investment advisers stated they are advising clients to review their investment portfolios on a more regular basis so they can manage any risks effectively.

"As we enter the fourth quarter of 2012, it is clear that there remain strong economic challenges and headwinds, driven largely by the eurozone crisis," Mr Aldridge commented.

However, he noted that many investment professionals in the UK are concerned about the slowing growth rate in China's economy, while there is also much uncertainty regarding the US ahead of its presidential election next month.

"Nearly half of respondents cited the so-called US fiscal cliff as one of the biggest global macroeconomic challenges right now," Mr Aldridge said.

He added that it will be interesting see whether the outcome of the election has any impact on sentiment among investment professionals in the UK.

Voters in the US will go to the polls on November 6th to choose between the incumbent Democrat president Barack Obama and his Republican opponent Mitt Romney.